According to Televisionpoint.com , the Indian Bombay High Court has reserved its order on an appeal filed by Sony Entertainment Television (SET) Satellite , Singapore , against payment of income tax on revenue generated in India and then relayed to it in Singapore by its agent, SET Satellite , India. The decision by the court, when pronounced, will have far reaching consequences on tax matters for other international companies operating in a similar manner.

That is, having a sub in India, but sending most of the income abroad. SET Satellite, Singapore, claimed that SET Satellite, India, was indeed complying with tax claims due on its earnings, which were by way of commission on the revenue it sent to SET Satellite, Singapore. They, in turn, allowed their Indian agent to retain part of the revenue they had generated in India through advertisements and other means.

The argument is that the permanent agent in India was paying tax and, therefore, there was no need to pay tax on the money sent to Singapore. The counter argument was that once a company had an economic nexus in India, a foreign company would also be taxed as ” Dependent Agent Permanent Establishment “, as all of the income was generated in India! —Mumbai, India Seems as though all is well now between super director Peter Jackson and New Line Cinema …

MGM and New Line are going to co-finance as well as co-distribute two films… yep, Tolkien returns under the artful management of Peter Jackson with The Hobbit and an untitled sequel to that title. In North America, New Line will distribute the films, with MGM handling the international chores. The Executive Directors will be, of course, Peter Jackson, and Fran Walsh , with New Line handling film production as the two features will be shot simultaneously.